Increasing Returns and Economic Progress

Young, Allyn A.

doi:10.2307/2224097

Cited by 1,559 publications

(570 citation statements)

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“…The difference between the two aggregate production profiles is considered as positive network effects of division of labor on aggregate productivity. This network effect implies that each person's decision of her level of specialization, or gains from specialization, depends on the number of participants in a large network of division of labor, while this number is determined by all individuals' decisions in choosing their levels of specialization (so-called "the Young theorem", see [25]). Since economies of specialization is individual specific (learning by doing must be achieved through individual specific practice and cannot be transferred between individuals), labor endowment constraint is specified for each individual, so that increasing returns are localized.…”

Section: The Framework Of General Equilibrium Model Of Transaction Comentioning

confidence: 99%

Transaction Cost, Specialization and Division of Labor<br/> —A General Equilibrium Analysis of Entrepreneurship under Globalization

Li¹

2014

TEL

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This paper develops a Walrasian general equilibrium model based on transaction cost and specialization to investigate the evolution and role of entrepreneurship in a competitive market under globalization. The implication of our model is straightforward that if the entrepreneurship in a competitive market under globalization is efficient, it will ensure the network and effects of division of labor can be fully exploited when the gains from the division of labor outweigh the costs of exchange between individuals of different specialization patterns with the different fixed learning costs. Hence, the entrepreneurship service in a competitive market under globalization can promote aggregate productivity by enlarging the scope for trading off network effects of the division of labor on aggregate productivity against transaction costs. To business practitioners, this model suggests that the entrepreneurship service is a key element of business viability during which a major transition took place in human activity. Besides, the improvement of the level of globalization and the general transaction efficiency coefficient will increase the level of division of labor and the per capita real income level of participants.

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Section: The Framework Of General Equilibrium Model Of Transaction Comentioning

confidence: 99%

Transaction Cost, Specialization and Division of Labor<br/> —A General Equilibrium Analysis of Entrepreneurship under Globalization

Li¹

2014

TEL

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“…The origin of contemporary poverty trap theory is often traced back to work done in the 1950s. Nurkse (1953), building on work by Young (1928), studied the possibilities for economic growth in underdeveloped countries, investigating notions of circular and cumulative causation driving a vicious cycle of poverty, which were further developed by Myrdal (1957). Coordinated and complementary investments in industrialization, delivering a "big push" for growth, were suggested as a solution to the vicious cycle for underdeveloped nations (Nurkse 1953, Rosenstein-Rodan 1984.…”

Section: Poverty Traps In the Development Literaturementioning

confidence: 99%

A Synthesis of Current Approaches to Traps Is Useful But Needs Rethinking for Indigenous Disadvantage and Poverty Research

Maru¹,

Fletcher²,

Chewings³

2012

E&S

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ABSTRACT. Indigenous disadvantage and poverty have persisted and are set to continue into the future. Although a large amount of work describes the extent and nature of indigenous disadvantage and poverty, there is little evidence-based systems understanding of the mechanisms that keep many indigenous people in their current dire state. In such a vacuum, policy makers are left to make assumptions about the causal mechanisms. The persistence of inequality and poverty suffered by indigenous people is broadly consistent with the existence of dynamical traps as described in both the resilience and development literature. We reviewed and synthesized these bodies of literature on traps and found that although they give a good lead to a systemic and parsimonious way of exploring traps, the mechanisms suggested need significant rethinking for the indigenous context. Specifically, we recommend extending the concept of traps to encompass the possibility that they are highly resilient but undesirable states, in contrast to current notions of traps as low resilience states. We also highlight the need for close scrutiny of the boundaries of indigenous systems because of the historically public nature of indigenous lives as well as the possible conjoint existence and causal linkage between poverty-and rigidity-traps in the indigenous context.

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“…This ambiguous "definition" immediately invited furious debate about whether these increasing returns were compatible with the competitive equilibrium [2]- [7]. These discussions further degenerated into confusion.…”

Section: Introductionmentioning

confidence: 99%

Welfare Analysis of a Market Model with External Increasing Returns and Differentiated Commodities

Suzuki¹

2017

TEL

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Markets with increasing returns resulting from the positive external effects of production (hereafter external increasing returns) have been discussed from both positive and normative points of view. We present a complete general equilibrium model in which external increasing returns prevail within industries to produce differentiated commodities which are represented by real valued functions. Firms in an industry produce the commodity characteristics which are values of each commodity function. This formulation of differentiated commodities causes the equilibrium to be characterized as the solution of a variational problem. In order to answer this mathematically formidable question, we utilize the delta function of Dirac for the calculus of variations to be done in an elementary way. To our knowledge, this is the first time the delta function appears in economic analysis.

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Increasing Returns and Economic Progress

Cited by 1,559 publications

References 0 publications

Transaction Cost, Specialization and Division of Labor<br/> —A General Equilibrium Analysis of Entrepreneurship under Globalization

Transaction Cost, Specialization and Division of Labor<br/> —A General Equilibrium Analysis of Entrepreneurship under Globalization

A Synthesis of Current Approaches to Traps Is Useful But Needs Rethinking for Indigenous Disadvantage and Poverty Research

Welfare Analysis of a Market Model with External Increasing Returns and Differentiated Commodities

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Increasing Returns and Economic Progress

Cited by 1,559 publications

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Transaction Cost, Specialization and Division of Labor&lt;br/&gt; —A General Equilibrium Analysis of Entrepreneurship under Globalization

Transaction Cost, Specialization and Division of Labor&lt;br/&gt; —A General Equilibrium Analysis of Entrepreneurship under Globalization

A Synthesis of Current Approaches to Traps Is Useful But Needs Rethinking for Indigenous Disadvantage and Poverty Research

Welfare Analysis of a Market Model with External Increasing Returns and Differentiated Commodities

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Transaction Cost, Specialization and Division of Labor<br/> —A General Equilibrium Analysis of Entrepreneurship under Globalization

Transaction Cost, Specialization and Division of Labor<br/> —A General Equilibrium Analysis of Entrepreneurship under Globalization